Teal MP Monique Ryan calls for urgent action to help Aussies lured into 'predatory' interest-free loan scheme that encouraged them to trade welfare for student debt
Since the debt was indexed to the Consumer Price Index , many of the loan recipients have been saddled with ever-increasing debts decades later. She received $13,075 in loans between 1999 and 2001, but has been asked to repay almost $27,900 including adjustments for CPI.“I’m not saying that students shouldn’t repay loans – that’s not what this issue is about,” Dr McPhail said.
“Services Australia acknowledges that Ms McPhail has suffered extenuating circumstances that has affected her ability to repay the outstanding SFSS debts,” the agency wrote in the submission. A petition earlier from the MP calling for indexation changes to student debts attracted more than 285,000 signatures.
The SFSS was axed by the Coalition government after only a decade in 2003, amid admissions that it lacked fairness and transparency.